The city of Shanghai is enduring a strict lockdown that has left many of the residents of China’s financial capital confined to their homes for a month or more, with some experiencing severe food shortages. With cases dropping over the past four days, the municipal health commission said it will allow for limited movement in districts that have basically no community spread of the coronavirus. At the same time, capital city Beijing is now on alert, meaning that the zero-Covid policy enacted by Chinese President Xi Jinping has put the world’s second-largest economy constantly on the edge of lockdown.
How long the measures will last is anyone’s guess — especially as Mr. Xi prepares to break with recent custom and extend his rule for a third term later this year. The longer they persist, the harder it will be for the global economy, as Covid restrictions have affected maritime transport in numerous countries, including Brazil.
It has re-aggravated the logistical crisis seen since the beginning of the pandemic — putting pressure on global supply chains, and, consequently, worsening inflation.
According to data from Brazil’s National Confederation of Industry (CNI) and consultancy Solve Shipping, freight prices between Brazil and Asia skyrocketed in the 12 months leading up to April — up by 58 percent for refrigerated 40-feet containers and 50 percent for 20-feet containers.
Shanghai is home to the world’s busiest container port. Nevertheless, without space for storage and sometimes lack of outlets available for refrigerated containers, some shipping companies have been diverting vessels to other Chinese ports, many of which are now overloaded, generating a cascade effect.
Last week, Brazilian meat producers association ABPA said its members — which include giants JBS...
Search
